KLSE should defer the listing of Sunway Infrastructure Bhd for publishing false news and misinformation

(Kuala Lumpur, Tuesday): I have presented a Letter of Complaints against Sunway Infrastructure Berhad (SIB) to the KLSE this morning (16 Dec 2003) on behalf of the 20 plaintiffs effected by the Kajang Outer Ring Road project. Firoz Abdul Hamid (Head, Marketing Group), Mohamad Azam Ali (Vice President, Public Affairs), Arif Ghani (Manager, Market Promotions/ Communication) and two other KLSE officers received the letter on behalf of the KLSE. They have promised to look into the matter and take actions against SIB if the company was found misinforming the investors.

We have also expressed our disappointment with the Securities Commission as the commission has yet to reply to our complaints made on 21 November 2003, while SIB will be listed tomorrow (17 Dec 2003) as scheduled.

We are also waiting for a reply from the SUHAKAM and the Prime Minister Department on the matter.

The plaintiffs will be paying a visit to Sunway Group for a negotiation on Sunday, 21 Dec 2003 at 10 a.m. as a response to the call made by the Sunway CEO at a press conference on 9 Dec 2003. The Sunway management has expressed its willingness to resolve the matter out of court after the Sg Chua residents have staged a series of protests at some Sunway premises (Sunway Resort Hotel and Sunway Pyramid).

The Letter of Complaints to the KLSE is reproduced in toto as follow:-

Tuesday, 16 December 2003

The Chairman
Kuala Lumpur Stock Exchange

Ronnie Liu Tian Khiew
Advisor to the Sg Chua Residents Representative Committee
DAP Selangor chairman
77 Jalan 20/9, Paramount Garden
46300 Petaling Jaya, Selangor

Dear Sir,

RE: Sunway Infrastructure Berhad (SIB) Prospectus for IPO

In the Prospectus dated and published on 13 November 2003, Sunway Infrastructure Berhad (Company No. 405897-V) has made the following claim under the heading 1.7 Material Litigation, Capital Commitments, Contingent Liabilities and Borrowings:

"1.7 Material Litigation

Saved as disclosed in Section 20.4.6 and 20.4.7 of this Prospectus, as at 7 November 2003(being the latest practicable date prior to the issuance of this Prospectus), neither the Company nor its subsidiary companies are engaged in any material litigation, claims or arbitration, either as plaintiff or defendant, or any material claim against the Company or its subsidiary companies, or material arbitration proceeding which has a material effect on the business or financial position of the Company or its subsidiary companies and the Directors do not know of any proceeding pending or threatened or of any fact likely to give rise to any proceeding which might materially affect the business or financial position of the Company or the subsidiary companies."

We like to bring the attention of the KLSE to the disclosed note section 20.4.7 in the Prospectus, where Tan Yoke Kwee and 19 others filed an action in the High Court of Malaya at Shah Alam. (Originating Summons No MT3-21-164-2003) in late August 2003.

Tan and 19 others as plaintiffs have sued 1. Sistem Lingkaran Leburaya Kajang Sdn Bhd, 2. Sunway Holdings Inc Bhd, 3. Sunway Construction Bhd and 4. Pengarah Tanah dan Galian Negeri Selangor Darul Ehsan as defendants 1,2,3 and 4 respectively.{Sistem Lingkaran Lebuhraya Kajang Sdn Bhd (SILK) is a subsidiary company of Sunway Infrastructure Berhad (SUNSILK)}

The case is still pending in Shah Alam High Court and in fact, SILK and other defendants will be cited for contempt following the demolition of 15 houses owned by the plaintiffs without a court order on 11 November 2003 morning by SILK and the land office, with the assistance of the FRU.

Please be notified that on Monday, 10 November 2003, the plaintiffs have filed a notice of appeal to the Court of Appeal. Further on 13 November 2003, the plaintiffs have filed an application for stay, which was heard on 18 November 2003. These facts should be and could be disclosed in time for the Prospectus but SIB has chosen not to do so. However, the company has selectively disclosed the strike out on 8 Nov 2003, which was one day after
the so-called "latest practicable date prior to the issuance of this Prospectus".

The lordship Datuk Haji Suriadi Haji Halim Omar has granted a stay for one of the effected houses until 1.1.2004 and four other partly effected houses until the appeal is over. The first defendant SILK was also required to deposit RM350, 000 as security with the Shah Alam High Court for the effected house. This amount will be paid to the house owner upon success of the case against the defendants.

The demolition taken by SILK and land office on 11 November 2003 may affect heavy damages and claims on the Sunway group of companies as the plaintiffs now plan to cite the companies and the land office for contempt of court.

The plaintiffs are claiming RM350, 000 each as rightful compensation from the four defendants. I believe in any event, the outcome of these suits will inevitably has a material effect on the business or financial position of the Company and subsidiary companies.

We would also like to highlight the fact that SUNSILK has undertaken to indemnify the Government from all actions, suits, claims, demands, proceedings, losses, damages, compensation, costs (including solicitor and client costs), charges and expenses. (Refer to clause 21 of the Prospectus for details). If Tan and 19 others succeed in the suit against the fourth defendant, the claims and costs involved would have to be borne by SILK.

Please also note that in the said Prospectus, it is stated that there is a 100% owned subsidiary of SIB called Salient Million was incorporated to undertake housing development for homeowners effected by the construction of the highway. But this was only on paper and never carried out by the company. The matter could be a case of printing false news (Printing & Publication Act).

It was also stated in the Prospectus that a total of RM 300,000,000 will be incurred as land cost falling under the Ring Road. We failed to understand why the effected Sg Chua residents could not get their rightful compensation for their properties acquired in the process.

We have brought the matter to the Securities Commission on Friday, 21 Nov 2003 and still waiting for a reply. We urge the KLSE to look into our complaints and take the necessary actions within your jurisdiction.

Thanking you in anticipation.

Yours truly,

Ronnie Liu Tian Khiew
on behalf of the Sg Chua residents representative committee

* Ronnie Liu Tian Khiew, DAP national publicity secretary and Selangor State chairman